Net Income Per Limited Partner Unit

12 Months Ended

Dec. 31, 2019

Note 13. Net Income Per Limited Partner Unit

The Partnership’s net income is attributed to limited partners, in accordance with their respective ownership percentages, and when applicable, giving effect to incentive distributions paid to Noble. For periods prior to the conversion of Subordinated Units and simplification of IDRs, we had more than one class of participating securities and we utilized the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include Common Units, Subordinated Units and IDRs.

Basic and diluted net income per limited partner Common and Subordinated Unit is computed by dividing the respective limited partners’ interest in net income for the period by the weighted-average number of Common and Subordinated Units outstanding for the period. Diluted net income per limited partner Common and Subordinated Unit reflects the potential dilution that could occur if agreements to issue Common Units, such as awards under the LTIP, were settled or converted into Common Units. When it is determined that potential Common Units resulting from an award should be included in the diluted net income per limited partner Common and Subordinated Unit calculation, the impact is reflected by applying the treasury stock method.

Our calculation of net income per limited partner Common and Subordinated Unit is as follows:



	Year Ended December 31,
(in thousands)	2019		2018		2017
Net Income Attributable to Noble Midstream Partners LP	$	159,996	$	162,734	$	140,572
Less: Net Income Attributable to Incentive Distribution Rights	13,967		5,836		835
Net Income Attributable to Limited Partners	$	146,029	$	156,898	$	139,737

Net Income Allocable to Common Units	$	123,662	$	93,875	$	75,076
Net Income Allocable to Subordinated Units	22,367		63,023		64,661
Net Income Attributable to Limited Partners	$	146,029	$	156,898	$	139,737

Net Income Attributable to Limited Partners Per Limited Partner Unit — Basic
Common Units	$	3.09	$	3.96	$	4.10
Subordinated Units	$	3.86	$	3.96	$	4.10

Net Income Attributable to Limited Partners Per Limited Partner Unit — Diluted
Common Units	$	3.08	$	3.96	$	4.10
Subordinated Units	$	3.86	$	3.96	$	4.10

Weighted Average Limited Partner Units Outstanding — Basic
Common Units	40,083		23,686		18,192
Subordinated Units	5,795		15,903		15,903

Weighted Average Limited Partner Units Outstanding — Diluted
Common Units	40,105		23,701		18,204
Subordinated Units	5,795		15,903		15,903

Antidilutive Restricted Units	54		24		4